Because while a stronger yuan increases the dollar price of Chinese goods, it also lowers the yuan price of foreign raw material, allowing Chinese manufacturers to keep a lid on the price of their finished goods.
In my paper, I went on to examine whether the increase in imports was attributable to American demand for Chinese goods being price inelastic.
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There are plenty of reasons that American demand for Chinese goods is price inelastic including, most importantly, that there are limited substitutes for those goods.
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When it comes to ordinary household goods, such as those carried by the likes of Home Depot, Tesco, Carrefour and Wal-Mart, the Chinese are extremely price sensitive.
During 2010, the Chinese consumer-price inflation rate was rising.
In other words, if the price of Chinese goods to American consumers increased by 21 percent (on average) and Americans reduced their consumption of Chinese goods by less than 21 percent, then demand would be considered inelastic, the price effect would dominate, and total import value would rise (adding to the trade deficit).
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China is competitive, and this is largely because Chinese products are not price-sensitive, they are demand-sensitive.
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The automaker is launching and developing cars for the affluent as well as the more price sensitive Chinese customers.
Stockpiling at a time of record high prices suggests that Chinese businesses expect the price of goods to go even higher.
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There are signs of this: on Wednesday the Chinese government raised the price of fuel for the first time this year.
However, then and now, a more pragmatic minority viewpoint has held that while luxury goods may see a high-single to low-double digit drop in price for Chinese travelers for a brief moment, the brands most sought after by Chinese shoppers will simply respond to this greater demand by raising prices.
Iron ore price negotiations continued between global miners and Chinese steelmakers, with various news reports suggesting that a new deadline has been set for this month, and that the Chinese steel mills may be making a concession on the deep price cuts they seek.
But all the imports which are put together by that Chinese labour would fall in price in yuan terms.
Beijing is trying hard to curb price appreciation and Chinese home ownership is already among the highest in the world.
The Chinese press said that the price tag was 190 million Euros.
Manufacturing of solar panels and related products is picking up as price pressures from Chinese solar manufacturers are felt by U.S. solar companies.
In fact, price-sensitive Chinese consumers have proved fickle about brands.
If things go well for U.S. Steel, the long equity position likely offsets whatever loss you would take on the CDS. U.S. Steel is far from immune to the price impact of Chinese demand, he says, and as a vertically integrated steelmaker it has exposure all along the process from iron ore to finished products.
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The commission has sought pledges from the Chinese to sell telecommunications equipment in Europe above a minimum price, but they've been rebuffed by Chinese officials, say people familiar with the discussions.
Last year, the Chinese government stopped providing nationwide home price statistics, and now only reports data on specific cities.
Solyndra's technology is excellent, he says, but it just couldn't compete in the market with low-price panels from subsidized Chinese makers.
Chinese demand has pushed the average price of a Vancouver home up 12% in 2010 and is expected to rise another 3% this year, according to the Canada Mortgage and Housing Corporation.
Dora the Explorer and Diego characters were also included in the latest in a string of safety recalls of Chinese products came from Fisher-Price, which said it was asking for a voluntary return of almost 1 million toys.
When a bellman in a Shanghai hotel advised me to get a breakfast coupon from Lashou.com, a Chinese group-buying site, for less than half the price, I knew that social commerce had gotten into the hearts and minds of Chinese consumers.
In mid-March ThinkEquity analyst Eric Ross reported that Chinese motherboard makers were seeing drastic Intel price cuts.
Well, who really wants to be competing on price with a no name Chinese manufacturer in a mature (ish at least) consumer electronics market?
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With price-to-earnings ratios running as high as 50 and 60 for Chinese firms, any exaggeration of earnings can translate into huge share-price gains.
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For one thing, the consumer price index has been signaling lower Chinese inflation in the months ahead.
It appears that none of the other Chinese manufacturers could supply a similar cut-price model with sufficient features.
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He said the private deals could allow U.S. furniture makers to favor certain Chinese firms over others and effectively set a price of entry into the market.
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